| 1 | The goods are valued in gross profit at 20,000 yuan. | |
| 2 | This assumes a steady deterioration in industry gross margins. | |
| 3 | Operating Income Operating Income is the amount left over after subtract all the operating expenses from Gross Profit. | |
| 4 | If we reduce prices, our margins will be lower and that will cut profits. | |
| 5 | If we reduce prices, our margins will be lower and that will cut profits. |